Here's another great take from today's NYT on what is shaping as one of the biggest business battles of all time:

As the PC era wanes and the Internet era gathers force, Microsoft's
revenues have never been higher and its quarterly profits remain in the
billions. But it has yet to find profitability in an array of
businesses that it has entered beyond those it has dominated, operating
systems and office applications.

....

I.B.M. remained highly profitable in the 1980's even after the advent
of the PC produced a growing array of challengers. But by the early
1990's, the eclipse of the mainframe and I.B.M.'s inability to find its
way in the PC era forced the company to go through a sweeping makeover
in management and culture; it has never regained its previous influence.

So Microsoft won't disappear but it may not be the industry leader it has been for recent decades. The next era in computing is being developed elsewhere.